Supply Agreement template

Supply Agreement Template Compliant with the Laws of the Kingdom of Saudi Arabia

On / / AH, corresponding to / / AD, in the city of ........, it was agreed between: First Party (Supplier): Establishment/Company ........................, Commercial Registration No.: ............, VAT No.: ............, National Address: ................, represented by Mr/Ms ................ Second Party (Buyer): Establishment/Company ........................, Commercial Registration No.: ............, National Address: ................, represented by Mr/Ms ................ Clause One: Items and Specifications

Item	Specification / item number	Unit	Quantity	Unit price	Total
....	....	....	....	....	....
....	....	....	....	....	....
Total before tax					........ riyals

The approved sample signed by both parties (if any) shall be the reference in the event of any disagreement over the specification. Clause Two: Value and Value Added Tax The total value is (............) Saudi riyals, (inclusive / exclusive of) value added tax. The Supplier undertakes to issue a compliant tax invoice where it is registered with the Zakat, Tax and Customs Authority (ZATCA). Clause Three: Delivery

• Place of delivery: ........................; delivery term: (delivery at the Buyer's warehouse / delivery at the Supplier's premises).
• Supply dates: (in a single delivery on / / AH / in instalments according to the schedule: ........................).
• Risk of loss passes to the Buyer upon actual delivery at the agreed place.
• ........ shall bear the costs of transport, loading, unloading and insurance in transit.

Clause Four: Inspection and Acceptance

• The Buyer may inspect the goods within (........) days of delivery and submit its comments in writing within that period.
• If the period expires without material comments, the goods shall be deemed accepted, without prejudice to the Buyer's rights in respect of latent defects.
• Non-conforming items shall be replaced by the Supplier at its own expense within (........) days, or their value shall be deducted.

Clause Five: Payment (Advance payment of ____% on signing / payment within ........ days of the invoice date and acceptance of the goods). Payment shall be made by bank transfer to IBAN: SA.............................. Clause Six: Delay If supply is delayed without an acceptable excuse, the Buyer is entitled to a penalty of (........) riyals for each day, not exceeding (____%) of the contract value, and after a grace period of (........) days the Buyer may purchase substitute goods at the Supplier's expense for the price difference. Clause Seven: Warranty The Supplier warrants the items for a period of (........) from delivery against manufacturing defects, and shall replace or repair any defective item at its own expense, without prejudice to the provisions of the Civil Transactions Law. Clause Eight: General Provisions

• The contract is governed by the laws of the Kingdom, in particular the Civil Transactions Law.
• Disputes shall be settled amicably, failing which before the competent judicial authority.
• The National Address recorded above is adopted as the chosen domicile for notices.
• Executed in two copies, one held by each party.

Supplier: Name: ................ Signature: ................ Date: / / AH Buyer: Name: ................ Signature: ................ Date: / / AH